Patrick Lumumba, 38, was named as the killer of Meredith Kercher by Miss Knox, 21, who told police she had "covered her ears" as he murdered her. He was held in jail for two weeks before being released without charge.

Earlier this month he applied for £462,000 damages from the Italian government for his wrongful detention, insisting that his life had been "ruined" as a result.

At the time judges ruled his demand "excessive" but as the trial of Miss Knox resumed in Perugia, Mr Lumumba said:"The figure is a total humiliation for me. Journalists from all over the world are here in Perugia covering this trial, even from Australia, which means my image and reputation has even been damaged on the other side of the world.

"All I want is that I am treated fairly by the court. I am not asking for a handout, I just want fair compensation for the fact I spent two weeks in jail for no reason.

"As a result of what happened I suffered as a businessman, and as a father and husband. My bar shut as a result of all the publicity because no-one would come now I make a living writing music. I am very disappointed by what the judges have ruled."

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Mr Lumumba is bringing a separate civil case against Miss Knox for slander, which is running concurrently with the hearing in Perugia, and he is seeking damages of £1 million.

Miss Kercher, 21, was found semi naked and with her throat cut in her bedroom of the house she shared with Miss Knox and two other women in the Italian town of Perugia in November 2007. Miss Knox is jointly accused with her former boyfriend Raffaele Sollecito, 24, of murdering and sexually assaulting Miss Kercher after prosecutors and police say the British language student refused to take part in a drug-fuelled sex game.

The court in Perugia where the two suspects are on trial has previously heard how Miss Knox named Lumumba while being questioned at the city's police station, declaring: "He's bad. He did it. He killed her."

Last October a third defendant, 21-year-old Ivory Coast national Rudy Guede, was tried separately, found guilty and sentenced to 30 years for sexually assaulting and murdering Miss Kercher.

The Leeds University student from Coulsdon, Surrey, had been in Italy as part of a year long exchange programme for her European Studies degree. She had only been in Perugia two months when she was murdered.